Small-cap stock that has surged 50% in one month jumps after Q1 results 2023

Stock market today: Shares of Arihant Capital Markets have been in uptrend for last one month. The financial stock has risen from 38.50 to 57.50 apiece levels, logging near 50% upside in this time. However, it seems that there is more steam left in this small-cap stock. 

Arihant Capital Markets share price today opened upside and went on to hit intraday high of 59.50 apiece on NSE, logging near 6 per cent intraday rise within few minutes of stock market’s opening bell today. However, profit booking soon triggered and the small-cap financial stock came down at around 57 apiece levels.

Arihant Capital Markets Q1 results 2023

In Q1FY24 results, Arihant Capital Markets Ltd reported a growth of 23.04% YoY in revenue from operations, which rose from Rs. 3477.87 Lakhs (Q1FY23) to Rs. 4279.23 Lakhs (Q1FY24). PAT jumped 54.28% YoY, from Rs. 744.94 Lakhs (Q1FY23) to Rs. 1157.74 Lakhs (Q1FY24).

Client Onboarding: The company has successfully increased its client acquisition rate through a digital-first approach. By implementing an in-house EKYC portal, it aims to achieve complete automation and a seamless onboarding journey, significantly improving user experience. With ambitious goals, it is confident in achieving exponential growth and aspire to onboard 5 lacs (500,000) new customers.

Interest Income: In the quarter ended 30th June FY23, the company’s interest income (standalone) amounted to 12.29 crore, compared to 11.71 crore in Q1, FY 2023. This further expected to increase continuously out of internal accruals.

Merchant banking division highlights: Revenues for Q1 ended 30th June 2023 stood at Rs. 60.37 lacs, as compared to 16.96 lacs in Q1, FY 2023, and 11.86 lacs in Q1, FY 2022. The company is positive about the outlook for FY 2024, having achieved a major breakthrough by securing the mandate for a Main Board IPO. With additional opportunities on the horizon, including a mainboard IPO and a major Open Offer, it foresees a strong income trend continuing from the June quarter.

Institution Highlights: The company’s Institution Division experienced notable growth, with revenues reaching 1.72 crore in Q1 ended 30th June 2023, up from 1.15 crore in Q1, FY 2023. The company added distinguished FIIs as clients, with more potential partnerships in the pipeline. The company’s upgraded ratings from some Mutual Funds clients attest to their commitment to service excellence. Planning to further expand their clientele, including marquee family offices, corporates, and PMS, it aims to achieve double-digit growth in the current year. The company was also ranked among the top 25 ratings in the Institutional setup last year by Asia Money, demonstrating their ongoing efforts to ascend further in the rankings.

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Updated: 08 Aug 2023, 03:33 PM IST

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